Office Space Demand in India to Remain High, with Bengaluru Leading the Charge

Office Space Demand in India to Remain High

India’s real estate market is a dynamic landscape, and office space supply is a crucial indicator of economic growth. A report by CBRE, a real estate consultant, paints a promising picture for 2023-2025. The report projects that office supply will surge, reaching an impressive 165 million square feet (msf) across India’s top seven cities. Bengaluru leads this surge, claiming a notable 29 percent of the total share.

Bengaluru, the vibrant tech hub of India, is the frontrunner in this surge of office supply. This bustling city is poised to contribute significantly, accounting for nearly a third of the total office space. The growth is strategically concentrated in areas like the Outer Ring Road and North Business District, reflecting the city’s rapid expansion and development.

Hyderabad takes a strong stance following Bengaluru, contributing 20 percent to the office supply share. Noteworthy areas like IT Corridor II and Extended IT Corridor are predicted to witness a surge in office space development, underlining the city’s role in the nation’s economic growth.

Delhi-NCR, Pune, and Chennai make substantial contributions, standing at 17 percent, 12 percent, and 11 percent, respectively. These cities mark their domains of growth, illustrating the nation’s varied landscape of office development.

The demand for office spaces remains robust, with key sectors like BFSI, technology, and pharmaceuticals steering the momentum. These sectors collectively account for a commanding 50 percent share in the leasing activities from January to September 2023. Such sustained demand underscores the stability and growth potential of the market.

The trajectory of office space supply showcases a resilient annual growth rate of 11 percent, signaling a promising future. Developers and occupiers can anticipate a surge of 15-18 percent in the upcoming three-year period from 2023 to 2025. This growth is propelled by a surge in occupier demand and expansive plans of developers.

India’s office supply landscape is experiencing a remarkable upward trajectory, poised to touch an impressive 165 million square feet by 2023-2025. Bengaluru stands tall as the leader in this surge, emblematic of India’s prowess in the real estate market. With other major cities contributing significantly, the Indian office space market is shaping up for an exciting and prosperous future, backed by the unwavering demand from diverse sectors and sustained growth in the coming years.

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